Eurozone’s Flaws Worsen Greek Woes

Problems go deeper than current-day headlines

To understand why Greece and its creditors have repeatedly failed to put its giant debt burden on a sustainable path, look beyond the current-day headlines about the intransigence of a left-wing government in Athens or the tested patience of officials in Berlin and Brussels.

Blame lies more broadly with the flawed political structure of the monetary union’s institutions, where a highly integrated financial system coexists with fragmented and unpredictable governance. That structure means it is dangerous to assume that bigger...